Mr. Jonathan Katz
Securities and Exchange Commission
April 13, 1998
RE: SR-NASD-98-21
Dear Mr. Katz:
I have never written a comment letter before, but felt compelled to do
so with this rule that you are considering. The Actual Size Rule (even
its name is a misnomer), has had such a tremendously negative effect on
my ability to invest. I can't get into a position at a decent price,
and never know how many pieces I will be filled in or at what price
levels. It's even worse getting out of positions -- it looks like I
have a profit, and in seconds I'm on the losing end of the deal. It
seems the only ones making money any more are the Market Makers.
I know you may think that I am just imagining things, or that there are
just more people trading and so this must be expected - but the change
occurred simultaneously with the rule implementation. A Market Maker
will jump into an ECN with a 100 share order, and then, when we can't
SOES, all the other Market Makers back away from their quotes - either
they change them to 100 shares or they change levels completely.
I thought the Market Makers were suppose to do what their name implies,
make a market -- what kind of a market is it if it is quoted in 100
share lots. There is not fluidity, no depth and no accountability.
When I started utilizing the SOES system and trading more on NASDAQ I
thought it was such a wonderful market place. Now it just seems to be
the market place for fools, 'cause that is what the Market Makers are
playing us for.
We are dependent on the SEC to keep the NASD from tucking awful pieces of
rules in with basically good ones. They are acting more like the Senate
every day. Then they do their own analysis and send it to you as if it
is real. Don't be played like we are being played - stand up to them and
keep this market an honest place for individuals like myself to invest
their hard earned money.
Sincerely,
Teresa King
1430 Fronteir Valley Rd. #43
Austin, Texas 78741